Chengdu Real Estate Market Bubble Study

The"bubble"in the economy means one kind of speculative process,in which the price of one or a series of assets breaks away and continuously goes up from market basic value.Since the mankind began to step into market economy era,the economic bubble events have been accompanying with the development of human.The bubble will probably lead to the economic and financial crisis.The world's economic system is bearing the impact of the speculation overbearing tide in rapid succession.Reviewing all previous large scale"foam incidents"in history,we can find that the important carriers happening in these"foam incidents"are real estate and stock .The real estate bubble will bring a lot of problems to a national economy .Recently in China, as soaring in economy, continuous improvement of people's living standards and ongoing expansive investment scale of fixed assets,the real estate industry has also been into a new period. Chengdu,as the centre city of economy and finance of the west China, the real estate problem is extremely noticeable. This paper is just launched around this question .The author attempts to set up an analysis framework about economic bubble in this paper to systematically analyze the state of real estate market in Chengdu.This paper has five parts. In the first chapter the author introduces several famous bubble events in history and reviews the relevant theory of"bubble".Then the author builds an analysis framework and identifies the definition, reasons and harm of"bubble". In the following part, the author discusses the effective enquiry and speculative enquiry in real estate market in Chengdu . The rapid development of Chengdu's economy improves the level of local people's life and attracts a great deal of investors. All of this makes people in Chengdu need more houses . This is an effective demand. This kind of demand will make the real estate market develop in a healthy way. The author analyzes the demand of the real estate in Chengdu by using the up-to-date statistic status, introduces the qualitative and quantitative analysis methods and gets the conclusion that there was no bubble in the real estate market in Chengdu. In the third part the author uses four indexes which are popular in the world to verify the conclusion that is analysed in the preceding chapter. In the chapter four, the author analyzes the government's macroscopic policies which are very important to the"bubble". At the same time , it also proves that the government's policies are correct and the Chengdu's real estate market has no bubble . In order to set up a healthy real estate market in Chengdu, in the last part, the author gives her own views and suggestions .